Herald on Gold Card costs

It is little wonder that superannuitants applauded long and loudly in 2008 when the Labour Government, at the behest of New Zealand First, added free off-peak travel on buses, trains and Waiheke Island ferries to the list of SuperGold Card entitlements. Even today, they must be pinching themselves. Many have taken full advantage, undoubtedly thinking such largesse would come to an end at some point. It has not, but the time has surely arrived for the Government to pull in the reins.

It has every reason. The scheme was originally budgeted to cost taxpayers $18 million a year. That has now swollen to $26 million, and will continue to rise if nothing is done.

Only the most essential public services should be made free of charge. If you make users of a service pay nothing for it, then demand will inevitably increase.

During the Northland byelection, Winston Peters pledged to gain free ferry travel in the Bay of Islands and Hokianga. If Aucklanders benefited from free rides to Waiheke, it was only fair that Northlanders should get the same for Paihia to Russell and Rawene to Kohukohu, said the NZ First leader.

Why stop there? Why not free flights up and down the country?

The increasing pressure on the concession should be enough to persuade the Government to be far more decisive. But that seems unlikely. Superannuitants represent a strong voting bloc, and any administration is bound to be wary of losing their support. In its defence, the Government can also point to the merit of giving seniors mobility and greater access to the community. Surely not to the extent that is being provided, however.

The vast majority of active superannuitants do not need free public transport. It is no coincidence that the entitlement was introduced during the dying days of the Clark Government. It was a blatant vote-catcher, along the lines of the interest-free student loans wheeled out three years earlier. The SuperGold Card concession wasn’t enough, however, to turn the electoral tide. Taxpayers have paid the cost ever since.

It may be too much to expect the Government to kill off the entitlement. But it is time to limit it to a sensible and sustainable level. At the very least, seniors should have to pay a reduced fare for their days out, so the cost of the concession is no more than that originally intended.

That is exactly what should happen. There should be a part-charge so that there is some incentive for the service not to be abused.

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Comments (34)

Mobile Michael

I live opposite a bus stop, it’s amazing how many over 65s turn up at 9.01am to catch the bus. While some are going to appointments and shopping, some are there most days going on a taxpayer provided outing. It does show how simple supply and demand works in Government services – make it completely free and demand skyrockets. The same applies elsewhere – why we don’t part charge for health services at hospitals (with an exemption for low income, those with illness and conditions that require frequent treatment, and those under 18) to reduce the delays for those who genuinely have need but have to wait behind people turning up with minor complaints who should be seeing a GP.

duggledog

What about Maori TV? It amounts to the same thing – state largesse targeted to a tiny amount of vocals. Problem is you put this stuff into place and it’s extremely difficult and risky to remove because those who benefit get used to it.

National won’t have the balls to do anything, if they were going to do anything they would have by now. Still, I do enjoy telling elderly people who do not like Asians that that is the cost of their Gold Cards!

My worry with the fabric of this country is that, even all these years after Rogernomics, if the people don’t feel prosperous enough, or their ideal job is not available, or their house isn’t affordable enough they will simply vote for it, and it will be guaranteed to them by Labour and the Greens.

I’ve got no problem with off peak bus concessions (not train or the bloody ferry!). Elderly people who use the bus either:
– are no longer able drive safely
– can’t afford a car

If a bus keeps such traffic off the roads and enables elderly people to maintain some independence, then in the context of a $80b annual budget is money comparatively well spent. I mean, how many hundreds of millions does the govt spend annually on the bro-ocracy?

If you must reduce expenditure on the elderly, why not cut all welfare expenditure on elderly foreigners who come here under the “family reunion” scam? Immigrants bringing in their grandparents FFS who haven’t got a hope in hell of being able to find work yet are entitled to all the government benefits.

mjw

The only problem here is the Waiheke Island ferry. Take that out of the scheme and it would be fine. Getting the elderly out and about has huge benefits to society, and the health system. It also gives them a chance to avoid pneumonia from being stuck in damp homes all day (if they are state house tenants, that is).

Ashley Schaeffer

stephieboy

EAD,

“If you must reduce expenditure on the elderly, why not cut all welfare expenditure on elderly foreigners who come here under the “family reunion” scam? Immigrants bringing in their grandparents FFS who haven’t got a hope in hell of being able to find work yet are entitled to all the government benefits.”

Fair enough ! Though I take it you are referring to all immigrants and not just those of a non northern European background ?

peterwn

Nothing will happen as long as Winston’s menacing presence remains in politics. Any threat to his sacred cows will get him going resulting in a swing of votes in his direction. Such is the consequences of MMP.

You may also be entitled to various concessions from the Australian Government. These could include:

bulk billing for doctor’s appointments – this is your doctor’s decision
more refunds for medical expenses through the Medicare Safety Net
assistance with hearing services through the Department of Health Office of Hearing Services website, and
discounted mail redirection through Australia Post
You may get some of these Australian Government concessions for a dependent child.

You may also be entitled to various concessions from state and territory governments and local councils such as:

reductions on property and water rates
reductions on energy bills
reduced fares on public transport
reductions on motor vehicle registration, and
free rail journeys’

yossarian

I’ve worked in retail and I’ve lost count how many times some pensioner has asked if there was a Gold Card discount? Like it’s a reason to get cheap everything. Let’s face it, the pension is a benefit and the more beneficiaries have the more they want.

I’d like to see anyone try and pry the Gold Card benefits from an old codgers hand. Also Winnie will be all over it like a rash, and do we really to give him more oxygen?

My old man thinks Winnie’s great, he gets free this and free that. When i point out that the generation following won’t be getting any of that and will be working til we’re 70, he simply says nah there’s plenty to go around.

trout

At budgetary scale the gold card scheme cost peanuts. It would save a great deal more in health costs. For those of us on fixed incomes we don’t have to worry about taking a bus or train in the region. You can see the life in the passengers on the train as they go for a joy ride, shopping or to visit a family. That’s better health care than pills anyday. Any doctor will tell you about their constant message to us of 75 to keep active.

Winston can rightly be applauded for this and sucessive governments in seeing the wisdom of keeping it. There is no apparent pressure on public services as the use of the card is time limited and I have neve seen a full train or bus yet. I could argue for an extension to other housebound groups.

The card is not just for the elderly either: being a superannuitant with young children my wife has one too. I wish sometimes that it extended in our case to the whole family.

waikatogirl

That is exactly what should happen. There should be a part-charge so that there is some incentive for the service not to be abused.

***
Those oldies who abuse free travel on the Gold Card can no longer complain about politicians, etc who have their noses in the trough. With any free scheme some will always take advantage.

The free off-peak bus fares to town and back seem appropriate but ferry rides on days out to Waiheke and long distance bus travel should incur a part-charge. Like with any scheme that is abused, adjustments need to be made.

Komata

KevOB

Re: ‘I could argue for an extension to other housebound groups’.

I have seen the Australian model in operation in Victoria, and, based on that, would suggest that the NZ ‘Card should in fact (could in fact?) be extended to cover the following areas as already existing in Oz. :

reductions on property and water rates
reductions on energy bills
reduced fares on public transport
reductions on motor vehicle registration, and
free rail journeys

No doubt the local authorities in NZ would scream if these ‘modifications’ were introduced here due to perceived ‘revenue loss’, but I believe that to do so would be beneficial (sorry, unintentional pun); especially as most pensioners have learnt to be ‘fiscally responsible’ and usually budget very well.

gazzmaniac

Calculating costs is generally quite difficult it would be interesting to see how they did it. The gold card model of offering off peak time is generally a reasonably efficient one.

I once went on an off-peak Wellington train. There were heaps of oldies on the train (I suspect I was the only fare-paying passenger). Each time the conductor saw a Gold Card he would give the oldie a “gold card” ticket. It’d be pretty easy for Tranz Metro to account for the cost of the scheme – count the tickets then invoice the government!

The thing that is more amazing is that New Zealand still has conductors on the train. That probably costs more than the Gold Card.

srylands

Kiwi Dave

As an old codger with a gold card, I fully support part charges to discourage its abuse.

Re. immigrants bringing in grandparents, my understanding is that, at least for super, you need to have resided in NZ for 10 years to qualify. If we want skilled and hard-working immigrants, NZ is probably a much less attractive place without grandparents to care for the grandchildren, prepare meals and look after the house while mum and dad are working.

MT_Tinman

Calculating costs is generally quite difficult it would be interesting to see how they did it. The gold card model of offering off peak time is generally a reasonably efficient one.

I once went on an off-peak Wellington train. There were heaps of oldies on the train (I suspect I was the only fare-paying passenger). Each time the conductor saw a Gold Card he would give the oldie a “gold card” ticket. It’d be pretty easy for Tranz Metro to account for the cost of the scheme – count the tickets then invoice the government!

Not quite.

The reason for the off peak stipulation is simply because the services are there and already running. Most of these services are contracted so passenger numbers don’t count, the provider gets paid anyway.

The cost is the added cost of the extra passengers and, of course, the non-availability of the service to paying passengers due to it being full of old farts riding for free.

That cost is aggravated by the fact that some of the old farts would have travelled anyway, paying full fare but still it appears negligible to me.

I don’t qualify and wouldn’t ride a bus if you paid me to but this editorial appears to me to be just another lazy slime writer finding an easy target without thought or study.

AgentBallSack

PJM

Does anybody know what the contract with Fullers says about the discount that the government gets for the off-peak Waiheke ferry trips for Supercard holders?

Or were the bureaucrats so commercially inept that taxpayers are paying the full fare for every Supercard holder’s off-peak Waiheke ferry trip? If they are paying the full price, there’s room for some substantial arm-twisting. I’m sure Fullers would sooner give a 50% discount to the government than lose a very substantial portion of the income from Supergold card travellers if the concession to Waiheke were to be scrapped!

Paulus Gnome

box345

Couple of points if I may.

First, very few RURAL seniors get anything at all from their gold cards. There is no “free public transport” for gold card holders in Moerewa, darlings.

Second. If you want to reduce the costs, then tackle it from the same point of attack as Super. (Not that anything will change under Key especially) but universal entitlement is the enemy in this. Hate to say it New Zealand, but Cut-the-Crap-Andy was right on this one. In due course, Super (with attached gold card) is going to have to be means tested eventually.

Third. There should be No, nil, nada immigration to New Zealanders of people over the age of 50. Full stop.

box345

I was in Auckland last week, and decided to go for my first train ride in over 40 years. Just Britomart to Penrose and return.

As DPF alludes to, it was purely a pleasure ride. Thank you all for this very pleasurable event.

It being 9.01am exactly, when the ticket vending robot asked me to pay for the ticket, I pushed a button that said “gold card”. I didn’t have my gold card with me, but that was okay, the vending robot didn’t actually require me to produce it.

This badly needs to be fixed, and pronto. Abuse of this will be costing taxpayers tens if not hundreds of thousands daily, right now.

jonno1

@PJM 10:22. I believe that Fullers receive a flat annual rate (but I may be wrong about that).

My perception is that the social benefits (eg exercise, social interaction etc) of Gold Card use are likely to be significant (disclosure: I am a card-holder). Further, the expenditure at coffee shops and suchlike needs to be taken into account for any meaningful analysis, both in terms of GST and business profits. Certainly my wine purchases on occasional trips to Waiheke far outweigh the ferry cost!

cubit

In Wellington the buses and trains are running throughout the day. There are no extra services catering for Gold card holders. In fact I don’t really see very many people at all on them in off peak times. The service is there and a few wrinkles make no difference. The Wai here ferry is a different story. It is probably the thing keeping Fuller afloat!

Michael

I will turn 80 in a few days time and I have hardly had any benefits from my gold card. Went for years without using it. At the moment I am using it to buy paint from Resene Paints who give a 20% discount if one has a gold card. Seems to me only pensioners in the big cities get any real benefit from it. I reckon the Waiheke Island Ferry should be removed from the scheme.
I might add that my wife who is in her late 70’s has hardly ever used the gold card either.

Paulus

My wife and I each have a Gold Card.
Having had for over 15 years we have never used them – except our local coffee shops in the main will give us 10% discount on our regular coffee.
We are not against some limitations and cost sharing when used.
Most of our friends are of the same thought.
But we do not live in Auckland.

Tauhei Notts

The Gold Card is yet another subsidy paid by the taxpayers of Winton, Waikouaiti, Westport, Waverley, Waipukurau and Wairoa for the citizens of Auckland and Wellington.
Gold Card costs should be paid for by the local body where the costs are incurred; not be central government.
Then the local bodies will create a merry song and dance and the costs of the Gold Card will plummet. The local bodies in the six towns mentioned will not complain. They will have nothing to pay.

SPC

There is no cost in allowing those over 65 to use unoccupied seating on publicly owned and supplied passenger transport at off peak times. There is only loss of fare (if charged the over 65’s may have travelled by car or not travelled).

The cost is in subsidy to private providers (saving in providing a public service).

One could argue lack of equivalent value to those in areas without access to transport – maybe they could get concessions on travel to (or between) provincial centres.